A Lease Where the Intent Is Temporary Use of the Property

question 206

Multiple Choice

A lease where the intent is temporary use of the property by the lessee and the lessor retains the risks and rewards of ownership is called

• A) off-balance sheet financing.
• B) an operating lease.
• C) a capital or finance lease.
• D) a purchase of property.

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Definitions:

Social Security

A government program that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and unemployed.

Long-term Solvency

The ability of an entity, typically a government or business, to meet its long-term financial liabilities and obligations.

Low Birthrate

A situation where a country or region experiences a lower number of births, often leading to concerns about population decline and demographic aging.

Aging Population

A demographic trend where the median age in a population increases over time due to increasing life expectancy and/or declining birth rates.